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new blockbuster book by WASHINGTON TIMES reporter Bill Gertz exposes how China recruited at least three CIA officers as spies, the DRUDGE REPORT has learned. Gertz writes in 'ENEMIES: HOW AMERICA'S FOES STEAL OUR SECRETS, AND HOW WE LET IT HAPPEN,' that details about the spies were first discovered in 1999 by counterspies who were able to trace some of the money paid by Beijing. Chinese intelligence paid hundreds of thousands of dollars to the spies, and one CIA officer alone got some $600,000 in Chinese money. Gertz discloses for the first time how spies were recruited by members of...

The FBI missed many opportunities to identify a suspected Chinese spy and her FBI lover, including a tip that she "was in bed with" the bureau's Los Angeles office, a Justice Department internal review said Wednesday. Katrina Leung, a Chinese-American paid informant for the FBI, and her handler, former counterintelligence agent James J. Smith, were able to deceive the FBI about their romantic relationship for nearly 20 years, Justice Department inspector general Glenn A. Fine said. In all, the FBI paid Leung $1.7 million over 18 years, Fine said. FBI supervisors failed to act on two serious incidents just 10...

LOS ANGELES – The government ended its crippled spy case against a woman once accused of being a Chinese double agent, accepting her guilty pleas to lesser charges of making a false statement to the FBI and filing a false tax return. Katrina Leung, 51, admitted Friday she lied to the FBI about her intimate relationship with her FBI handler, James J. Smith, and that she failed to include all her income on her tax returns for the year 2000. Leung, who already spent three months in jail and 18 months in home detention, agreed to be immediately sentenced. The...

LOS ANGELES (AP) - A former FBI informant once suspected of being a Chinese double agent has agreed to plead guilty to lying to federal agents and to a tax charge, U.S. law enforcement officials said Friday. Katrina Leung, a wealthy socialite from San Marino, Calif., was expected to enter a plea Friday in U.S. District Court in Los Angeles. She would serve no jail time under an agreement reached with federal prosecutors, one official told The Associated Press in Washington, D.C. The officials spoke on condition of anonymity because the agreement had yet to be presented to a federal...

Los Angeles - The case of an FBI agent charged with warning a suspected Chinese spy he was under investigation may also be linked to the prosecution of a retired agent who pleaded guilty to lying about his extramarital affair with a woman once suspected of being a double agent for China. Denise K. Woo is charged with deliberately disclosing a covert FBI operation and of lying to her FBI superiors. Her lawyers contend she acted out of concern that a family friend was wrongly suspected of passing defense secrets to China. The suspect wasn't charged, but Woo was fired...

LOS ANGELES (AP) - Federal prosecutors are appealing a judge's dismissal of a Chinese-American business woman accused of copying classified intelligence documents. Katrina Leung, 60, is accused of taking documents from the briefcase of her longtime FBI handler, James J. Smith, with whom she was having an affair. Prosecutors accused Leung of secretly working for the Chinese government but never charged her with giving the documents to a foreign government. In January, U.S. District Judge Florence-Marie Cooper dismissed the case, saying prosecutors engaged in misconduct by keeping Smith from communicating with Leung and her attorneys. A notice of appeal was...

LOS ANGELES - A federal judge on Wednesday refused to reconsider her decision to toss out charges against Katrina Leung, a Chinese-American business woman accused of accessing and copying classified FBI documents. Prosecutors alleged Katrina Leung, 50, took classified documents from the briefcase of her longtime FBI handler James J. Smith, with whom she was having an affair. They accused her of secretly working for the Chinese government but never charged her with giving the documents to a foreign government. U.S. District Judge Florence-Marie Cooper dismissed the case in January, stating that prosecutors engaged in misconduct by keeping Smith -...

Spy case to open can of FBI worms Probe into dealings of Los Angeles socialite could expose bureau tactics, lax operations Twelve years ago, a team of U.S. counterintelligence operatives flew into frigid southern Manchuria to assess Chinese spying on American diplomats. Instead, the U.S. agents came to believe their own team was tracked by China's Ministry of State Security every step of their mission, which is still classified today. The first clue was an odd elevator encounter in remote northeast China, an FBI agent bumping into a California nuclear-weapons scientist suspected of stealing neutron bomb secrets. Counterintelligence agents are...

<p>This is a week when thousands of Americans diligently working for our security heartily wish that the initials FBI -- Federal Bureau of Investigation -- were not attached to their job.</p> <p>Through their work of investigating crime and corruption and locking up offenders, FBI agents are well aware of the harm that one bad apple in a barrel can bring about. So when a case hits the headlines involving espionage -- complete with agents once respected by their colleagues, high-ranking politicians and a promiscuous lady with excellent Republican credentials spying for China -- our friends in the bureau wince.</p>